Shares of Shriram Finance surged over 4% on December 19 after Japan’s MUFG announced plans to acquire a 20% stake in the NBFC for ₹39,600 crore ($4.4 billion) via a preferential equity allotment. The floor price for the issue is set at ₹840.83 per share, with MUFG expected to purchase 47.11 crore shares. By 1:30 pm, Shriram Finance was trading 4.5% higher at ₹909, making it the top gainer on the Nifty 50.
Since early October, when MUFG deal talks emerged, Shriram Finance shares have jumped over 45%, rising 54% in 2025 compared with the Nifty 50’s 10% gain. The deal highlights renewed investor confidence in Shriram Group after Piramal’s exit in 2023 and surpasses Emirates NBD’s RBL Bank and SMBC’s Yes Bank investments, becoming the largest financial services transaction of 2025.
As India’s second-largest NBFC, Shriram Finance lends across urban and rural markets, focusing on commercial vehicles, tractors, and cars. The MUFG investment, pending approvals and clearances, will boost capital, strengthen the balance sheet, and support long-term growth. Both companies cited shared goals of sustainable expansion, governance improvement, and contributing to India’s economic development.
